Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Low income families hit hardest by global crisis

Low income families hit hardest by global crisis and high housing costs


“The effects on families of the global financial crisis, lack of adjustment of the accommodation supplement and high housing costs show up in the latest Household Incomes Report from the Ministry of Social Development,” says CTU Economist Bill Rosenberg.

“The report shows the impact of the recession was felt hardest on the 60 percent lowest income households but recovery for them has been no faster than for others. These lowest income households have had no increase in their take-home incomes after the rising cost of living (CPI) is taken into account between 2008 and 2012, while those with higher incomes saw a 5 percent gain”, says Rosenberg. “This takes no account of the fact that GST hits low income families harder, and that the cost of living for low income families has risen faster than for those on higher incomes.”

“The cost of housing is taking a deep toll. Housing stress – where housing costs exceed 30 percent of disposable income – is at its highest levels in decades for all households," Rosenberg said.

The report comments that because are incomes rising more slowly than housing costs and that Accommodation Supplement rules have not been properly adjusted since 2005 so that half of recipients were on the maximum in 2013 compared to only a third in 2007. In 2013 almost all of the people receiving the supplement to help with rents were in housing stress, and almost half were spending more than half of their take-home incomes on rent.

“Clearly, this is not a good time to be toughening up rules on eligibility for state housing and income-related rents as the government is doing, and wages are not keeping up with rising housing prices.” Rosenberg said.

“Meanwhile, people surviving on benefits are falling further and further behind with their real net incomes falling between 2007 and 2014.” Rosenberg said.

"While the Ministry is unwilling to say that inequality has increased, there are clear warning signs. Half of households have seen no increase in their incomes between 2008 and 2012. The 80/20 percentile income ratio after housing costs has been higher than it was in the 2008 year for four years now. The Gini coefficient has jumped up again. Even if the Gini’s movement is not statistically significant, inequality is far higher than it was in the early 1980s, and far higher than it should be.”

“Our tax system is weak compared to other countries in reducing this inequality. We need changes to our wages system so before-tax income is shared more fairly, and a more progressive tax system on income and wealth. Such changes are essential to ensure that the income from a growing economy will go to those who have earned it and most need it,"Rosenberg said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: A Govt. Christmas Bad News Dump -The Skycity Convention Center Blowout & A Negative MBIE Review

If the government really did have good tidings of great joy you can bet it wouldn’t be strewing them about at Christmas time – which is, traditionally, the dumping ground for terrible news that the government fervently hopes the public will be too distracted to notice. And so verily this Christmas Eve we learn of (a) the explosion of costs to the taxpayer and ratepayer of the vile SkyCity convention centre in Auckland and that (b) the government’s flagship MBIE “super-ministry” run by its Minister of Everything is a disaster zone of incompetence and mismanagement. MBIE is a Titanic looking for an iceberg, or so it would seem. More>>

 

Parliament Adjourns:

Greens: CAA Airport Door Report Conflicts With Brownlee’s Claims

The heavily redacted report into the incident shows conflicting versions of events as told by Gerry Brownlee and the Christchurch airport security staff. The report disputes Brownlee’s claim that he was allowed through, and states that he instead pushed his way through. More>>

ALSO:

TAIC: Final Report On Grounding Of MV Rena

Factors that directly contributed to the grounding included the crew:
- not following standard good practice for planning and executing the voyage
- not following standard good practice for navigation watchkeeping
- not following standard good practice when taking over control of the ship. More>>

ALSO:

Gordon Campbell:
On The Pakistan Schoolchildren Killings

The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto something that’s become a pop cultural meme. Fans of the Homeland TV series will be well aware of the collusion between sections of the Pakistan military/security establishment on one hand and sections of the Taliban of the other… More>>

ALSO:

Werewolf Satire:
The Politician’s Song

am a perfect picture of the modern politic-i-an:
I don’t precisely have a plan so much as an ambition;
‘Say what will sound most pleasant to the public’ is my main dictum:
And when in doubt attack someone who already is a victim More>>

ALSO:

Flight: Review Into Phillip Smith’s Escape Submitted To Government

The review follows an earlier operational review by the Department of Corrections and interim measures put in place by the Department shortly after prisoner Smith’s escape, and will inform the Government Inquiry currently underway. More>>

ALSO:

Intelligence: Inspector-General Accepts Apology For Leak Of Report

The Inspector-General of Intelligence and Security, Cheryl Gwyn, has accepted an unreserved apology from Hon Phil Goff MP for disclosing some of the contents of her recent Report into the Release of Information by the NZSIS in July and August 2011 to media prior to its publication. The Inspector-General will not take the matter any further. More>>

ALSO:

Drink: Alcohol Advertising Report Released

The report of the Ministerial Forum on Alcohol Advertising and Sponsorship has been released today, with Ministers noting that further work will be required on the feasibility and impact of the proposals. More>>

ALSO:

Other Report:

Leaked Cabinet Papers: Treasury Calls For Health Cuts

Leaked Cabinet papers that show that Government has been advised to cut the health budget by around $200 million is ringing alarm bells throughout the nursing and midwifery community. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news